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A company is considering a $155,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV
A company is considering a $155,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flow Year 1 $9,000 Year 2 $26,000 Year 3 $51,000 Year 4 $39,000 Year 5 $104,000 (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.) Year Net Cash Flows Present Value Factor Present Value of Net Cash Flows 2 3 4 1 $ 9,000 2 26,000 3 51,000 39,000 5 104,000 Totals $ 229,000 Initial investment Net present value $ 0 $ 0
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